India's major state-run ports saw a sharp rebound in coal imports in May, with volumes rising over 10% year on year, data from the Indian Ports Association showed.

The 12 major state-run ports imported 18.69 million tonnes of coal in May 2026, up 10.24% from 16.95 million tonnes a year earlier and 8.43% from 17.24 million tonnes in April.

Thermal coal imports at these ports totaled 12.31 million tonnes in May, up 6.84% year on year and 3.41% month on month. Coking coal imports stood at 6.38 million tonnes, rising 17.45% year on year and 19.63% month on month.

Despite higher arrivals, coal turnover activity at major Indian ports remained subdued in May, as end-user demand across domestic industries was generally cautious. Buyer appetite for imports was also dampened by falling South African coal prices, ample domestic inventories and weak demand from downstream sectors such as sponge iron.

Port thermal coal inventories continued to build in May, driven by the gap between arrivals and offtake. Stocks at major ports, already at relatively high levels at the start of the month, stood at around 15.5 million tonnes by end-May, up 2.6% from the beginning of the month.

The year-on-year and month-on-month increase in coal arrivals at state ports in May was largely driven by inquiry demand from April. Spot trade of South African coal at Indian ports remained thin in May, with a widening bid-ask spread as the rupee's depreciation pushed up import costs, domestic coal prices remained competitive, and demand from sponge iron and steel sectors showed no clear recovery.

Indonesian coal also offered limited cost advantage due to unfavorable international market conditions and freight costs, prompting most Indian buyers to maintain only need-based procurement. With the monsoon season approaching in June, imports may edge up slightly early in the month due to cargoes already in transit, but arrivals are expected to decline again as rains curb power demand.

Meanwhile, some power plants in southern India still hold critically low coal stocks. Continued coal haulage by these plants could lead to a gradual drawdown in port thermal coal inventories.

Among individual ports, Paradip on India's east coast imported the most thermal coal in May at 4.51 million tonnes, up 9.48% year on year but down 4.55% month on month. Paradip also led in coking coal imports at 1.85 million tonnes, up 22.84% year on year and 30.11% month on month.

In the first two months of the current fiscal year (April-May 2026), India's state-run ports imported a total of 35.92 million tonnes of coal, up 4.12% year on year. This included 24.21 million tonnes of thermal coal, up 3.44%, and 11.72 million tonnes of coking coal, up 5.56%.

Total cargo traffic at India's 12 major state-run ports reached 154 million tonnes in May, up 4.53% from 147 million tonnes a year earlier. Paradip handled the highest volume at 26.71 million tonnes, up 2.34% year on year.

The 12 major state-run ports include Kolkata, Paradip, Visakhapatnam, Ennore, Chennai, V.O. Chidambaranar, Cochin, New Mangalore, Mormugao, Mumbai, J.N.P.A. and Kandla.